Better Roads Digital Magazine
Issue link: https://read.dmtmag.com/i/85902
SPECIAL FROM AGGREGATES MANAGER A Randall-Reilly publication experience both the highest increase (13.2 percent) and the highest decrease (27.4 percent). The number of women in the workplace grew, as it was the only category to report more work force expansion (10.4 percent) than contraction (6.6 percent). Industry challenges Competition for sales has dominated operator concerns during the last four years. While the number who ranked it as a major concern diminished this year (25.5 percent), nearly 60 percent more called it a minor problem. Taken as a combined total, almost 85 percent noted it as a challenge — 25 percent more than the next most widespread problem. When asked how they were dealing with this issue, many respondents indicated that they have lowered prices to seal the deal, including break-even pricing. Some vertically integrated operators noted using package deals to streamline costs. Others say they are analyzing markets, implementing long-term strategic planning, and exploring new and growing markets. Customer service, customer contact, and a focus on quality are among the business strategies being employed to maintain customer loyalty. Other concerns, such as regulatory compliance and ag- gregates availability, are increasingly important to this year's respondents, but the dominance of competitive sales indicates that the aggregate industry — while in a better place than re- cent years — remains intensely focused on each job and each customer. By Annual Production 0 Improvements may be modest and regional, but they do, indeed, appear to be real. If these results and those forecast for 2012 bear out, then the aggregate industry needs to ensure that objects in motion stay in motion. From there, it's a matter of increasing mass and velocity. AM Capital Equipment 100 80 60 40 20 0 2008 Major Problems Facing Aggregates Managers (Four-Year Comparison) 100 80 60 40 20 By Region 2009 Budget Expectations (Comparison of 2005-2012) Capital Equipment Budget Expectations Major problems Facing Aggregates Managers *New category for 2009. Competition for sales has dominated operator concerns since 2008, but the number of operators listing this as their top concern (25.5%) is the lowest in recent years. The category showing the greatest growth is regulatory compliance, with more than double the number listing it as a major problem in 2011 compared to 2010. Concerns over aggregate avail- ability and permitting also experienced significant growth this year with nearly one in four reporting it as a major prob- lem; the highest level since 2008. Source: Aggregates Manager Forecast Studies Decreased Stay the Same Increased 2005 * Forecast data In 2012, more than one in five operators expects to increase capital expenditures. This anticipated level of increased equipment procurement is the highest since 2007. The number of those who expect to decrease capital investment levels continues to decline; this may be indicative of the aging equipment fleets in some operations. 2006 2007 2008 2009 2010 2011 2012* Methodology, 2010 2011 Competition for Sales Aggregates Availability/ Permitting Retaining Workers Regulatory Compliance Regulatory Fines* Water Availability Community Relations Safety By Primary Business Objectives, and Sources The objective of the 2012 Aggregates Manager Forecast Survey was to determine business, production volume, spend- ing, and workforce trends. In November 2011, Aggregates Manager e-mailed questionnaires to a random selection of readers in the crushed stone and sand and gravel, crushed stone-only, and sand and gravel-only industries. A total of 106 useable surveys were completed. Better Roads January 2012 19d